In the past couple of years consumers have been hit hard by the impact of the rising cost of living. Price increases are so stretched that wages are not keeping pace with inflation. Scott Chepow explores the current global economic challenges we face, and how with alignment and the right mindset, opportunity can create true partnerships. Negotiation is in the air!
In the northern hemisphere, as we head into the warmer months, we might say, “Spring is in the air.” But in the current financial climate, with ever-shifting macroeconomic indicators, it’s arguably more relevant to declare, “Negotiation is in the air.”
This oversimplification of the economy can be summed up more succinctly with two statistics that have recently been published: 50% of retailers globally have asked for price reductions from their supply base in the past six months. And 50% of suppliers expect to take price over the coming six months.
If I was to translate this situation into the language of a recipe, it might go something along these lines:
Step 1: In a large saucepan, combine 0.5 of cost price reduction and add 0.5 of cost price increase. Bring to a boiling negotiation over one month.
Step 2: Add emotion, personality, and inappropriate behaviors, and simmer for an additional three months.
Step 3: Remove from heat and allow to cool. Garnish with challenged relationships, diminished trust, and a faux aura of partnership. Serve hot!
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